UMD BMGT 350 - Chapter 16: Advertising, Public Relations, and Sales Promotion

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Chapter 16: Advertising, Public Relations, and Sales Promotion16-1: The Effects of Advertising- Advertising response function: a phenomenon in which spending for advertising and sales promotion increases sales or market share up to a certain level but then produces diminishing returns - New brands spend more on advertising because of advertising response function and a certain minimum level of exposure is needed to measurably affect purchase habits - Serious/dramatic advertisements are more effective at changing consumers’ negative attitudes- Humorous ads are more affective at shaping attitudes when consumers already have a positive image on an advertised brand - Advertising can affect the way consumers rank a brand’s attributes 16-2: Major Types of Advertising- A firm’s promotional objectives determine the type of advertising its uses - Institutional advertising: a form of advertising designed to enhance a company’s image rather than promote a particular producto Advocacy advertising: a form of advertising in which an organizationexpresses its views on controversial issues or responds to media attacks - Product advertising: a form of advertising that touts the benefits of a specific good or service o A product’s stage in its life cycle determines which type of product advertisingo Pioneering advertising: a form of advertising designed to stimulate primary demand for a new product or product category; used during introductory stage; offers in depth information on the benefits of the product; seeks to create interesto Competitive advertising: a form of advertising designed to influence demand for a specific brand; growth phase; appeals to emotions; brandingo Comparative advertising: a form of advertising that compares two or more specifically named or shown competing brands on one or more specific attributes; products experiencing slow growth or those entering the marketplace against strong competitors 16-3: Creative Decisions in Advertising- Advertising campaign: a series of related advertisements focusing on a common theme, slogan, and set of advertising appeals - Advertising objective: a specific communication task that a campaign should accomplish for a specified target audience during a specified period o DAGMAR: Defining Advertising Goals for Measured Advertising Results: one method of setting objectives; all advertising objectivesshould precisely define the target audience, the desired percentage change in some specified measure and the time frame - Identify product benefits o Goal: sell the benefits of the product not the attributes - Develop and evaluate advertising appealso Advertising appeal: a reason for a person to buy a product; typicallyplay off of consumers’ emotions or address some need/want the consumer has o Common advertising appeals: profit, health, fear, admiration, convenience, fun/pleasure, vanity/egotism, environmental consciousness o Unique selling proposition: a desirable, exclusive, and believable advertising appeal selected as the theme for a campaign - Executing the messageo The way an advertisement portrays its informationo Common executional styles Slice of life: depicts people in normal settings (McDonalds) Lifestyle: shows how ell a product will fit in a consumer’s lifestyle  Spokesperson/testimonial: feature a celebrity Fantasy: carmakers  Humorous (used in radio and TV advertising) Real/Animated product symbols: energize bunny  Mood or image Demonstration: shows consumers the expected benefit (laundry detergent)  Musical Scientific (used for print)- Post campaign evaluation16-4: Media Decisions in Advertising- Medium: the channel used to convey a message to a target market- Media planning: the series of decisions advertisers make regarding the selection and use of media, allowing the marketer to optimally and cost effectively communicate the message to the target audience - What type of medium will best communicate the benefits?- Newspaperso Advantages: geographic flexibility and timeliness, high individual market coverage, short lead timeo Disadvantages: little demographic selectivity, expensive o Cooperative advertising: an arrangement in which the manufacturerand the retailer split the costs of advertising the manufacturer’s brand- Magazineso Advantages: good reproduction, demographic selectivity, regional selectivityo Disadvantages: long term commitments, slow audience build up, long lead time, lack of urgency - Radioo Advantages: low cost, immediacy of message, selectivity and audience segmentation, large of out home audience, timeliness, geographic flexibility o Disadvantages: no visuals, distractions from background sound, commercial clutter - TVo Advantages: wide and diverse market, low cost, immediacy of messageso Disadvantages: commercial clutter, short life of message, little demographic selectivity with network stations o Infomercial: a 30 minute or longer advertisement that looks more like a TV talk show than a sales pitch- Interneto Advantages: low cost, high target-ability, fast growing, ability to reach a narrow target audience o Disadvantages: not everyone has access to internet, many not using social media, have to click on ado Advergaming: placing advertising messages in web-based or video games to advertise or promote a product, service, organization or issue - Outdoor mediao Advantages: repetition, moderate cost, flexibility, geographic flexibilityo Disadvantages: short message, lack of demographic selectivity, high noise level distracting audience - Media selection considerations o Media mix: the combination of media to be used for a promotional campaign o Cost per contact: aka cost per thousand (CPM): the cost of reaching one member of the target market o Cost per click: the cost associated with a consumer clicking on a display or banner ad o Reach: the number of target consumers exposed to a commercial at least once during a specific period usually 4 weeks o Frequency: the number of times an individual is exposed to a given message during a specific period o Audience selectivity: the ability of an advertising medium to reach a precisely defined market (17 magazine for teens) o Flexibility: radio and internet are flexible >>> can change ad on the day it is aired o Noise level: level of distraction experienced by the target audienceo Life span: messages can either quickly fade or persist as tangible copy to be studiedo Media fragmentation: media planners must pay attention


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UMD BMGT 350 - Chapter 16: Advertising, Public Relations, and Sales Promotion

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